Interview Background: The G20-LED Lighting Summit is a high-end platform for LED lighting industry leaders led by Gaogong LED. The member companies cover the middle and upper reaches of the industrial chain and have certain segmentation areas and industry representation. In this issue of G20 interview, Gaogong LED visited the member company, LED Lighting Factory Sanxiong Aurora, and discussed with Lin Xiyan, the deputy general manager of Sanxiong Aurora, the future direction of the LED lighting industry and the strategic layout of the company. What does it mean for you in 25 years? Perhaps it is a good time for you to step closer to your dreams. For Sanxiong Aurora, it is a history of entrepreneurship, 25 years of struggle. 1991-2016, 25 years passed by. In the "2015 China Real Estate Enterprise Sales Top 100" list, nearly 80% of the housing enterprises are Sanxiong Aurora lighting buyers. This is undoubtedly a glorious course of leaping development. The 25-year history of Sanxiong Aurora is also a mirror for the development of China's lighting industry. Whether it is from the traditional lighting to the development and innovation of LED lighting, or in terms of product quality, technology research and development, industry communication, brand building, LED development, etc., Sanxiong Aurora has always been in front of the industry, setting a new and healthy development for the Chinese lighting industry. Leading role model. In 2016, Sanxiong Aurora became the first lighting partner in Manchester City China Then, in the LED industry entering a key inflection point, let's take a look at how Sanxiong Aurora will respond to changes in the future LED industry. Q: In the first half of the year, the LED lighting market continued to grow steadily, and the price of the products also stabilized. As a domestic LED lighting manufacturer, what is the operating status of Sanxiong Aurora in the first half of the year? Lin Yan: In the first half of this year, everyone was talking about “market winterâ€, but Sanxiong Aurora achieved counter-market growth and made major breakthroughs in channel expansion. It is expected that the number of specialty stores will increase to more than 1,000 by the end of this year. The reason why we can achieve the contrarian growth is that Sanxiong Aurora merchants highly recognize this brand, which is also the confidence of Sanxiong Aurora market. Q: From the situation in the first half of this year, what changes have occurred in the terminal channel? What is the driving force behind these changes? Lin Yan: On the one hand, we have made major breakthroughs in channel expansion. It is expected that the number of specialty stores will increase to more than 1,000 at the end of this year, which will enable nearly 5,000 new sales terminals in recent years to further improve the company's sales network. On the other hand, we will vigorously develop home retail channels and O2O e-commerce platform construction projects. The changes in these terminal channels are due to the fact that the Sanxiong Aurora product channel goes hand in hand. Under the premise of insisting on quality assurance, Sanxiong Aurora also greatly reduces the cost through large-scale, standardized manufacturing and sales, so that the product cost performance can be well guaranteed. From a historical perspective, Sanxiong Aurora has always been in the traditional lighting market, and has a large customer base in the real estate engineering market. Q: Sanxiong Aurora is one of the largest LED lighting companies in China. What new changes will the company make in the second half of the year in terms of lighting products and market development? Lin Yan: For the second half of 2016, Sanxiong Aurora will continue to deepen the popularity of smart products. Most of the products launched at the Guangya Exhibition in June have been intelligent. In addition, Sanxiong Aurora will increase its efforts in channel development, focusing on product planning and channel planning, especially in the second and third-tier markets. In the second half of the year, Sanxiong Aurora will increase its research and promotion in the field of intelligent applications. The intelligent transformation is not simply the introduction of a robot or intelligent equipment, but a systematic project, research and development, production process, quality management, etc., effectively combined to gradually improve the overall level of intelligence, and ultimately establish a complete intelligent manufacturing system. . Q: In the past few years, the LED lighting industry has been in a period of intense price competition. The continuous innovation of products has become a weapon for enterprises to differentiate their competition. How does Sanxiong Aurora protect its products and market differentiation? Lin Yan: From the aspect of R&D strength, Sanxiong Aurora has continuously expanded its cooperation and exchanges with industry organizations and institutions for more than ten years, and promoted the seamless integration of “production, learning and researchâ€; Aurora has more than 200 professional technical teams, R & D engineers pursue the overall effect from product materials, circuit design to process design, leading edge thinking leads product innovation, can quickly update products in a very short cycle, closely respond to market demand Variety. From the perspective of manufacturing equipment, the company firmly implements high standards in hardware manufacturing equipment and introduces a large number of manufacturing equipment that represents the world's leading level, such as wave soldering machines, high-speed punching machines, large-scale CNC bending machines and CNC punching machines. From the aspect of quality control, the technical team is distributed in the aspects of product development, raw material procurement, production control, quality control, process improvement, etc., and practice quality commitment from all aspects: after raw materials are put into warehouse, they must undergo strict testing procedures; key manufacturing processes Digital operation is carried out to ensure the accuracy and precision of production control, and the technical error control of the manufacturing process will be at a minimum. Q: In the first half of the year, what are the new changes in the two major markets of home lighting and commercial lighting? Lin Yan: Most of the current lighting companies are actively planning the layout of intelligent lighting, cross-border cooperation to build / integrate into the smart home platform. In the future, healthy lighting is the driving force behind the development of the next wave of lighting. Q: In the long run, home lighting and commercial lighting are the focus of market competition and the largest market for applications. How does Sanxiong Aurora's future continue to build its own competitive barriers at the product and market levels? Lin Yan: For the dealer level, Sanxiong Aurora has been holding a nationwide CEO training training class since July 2016. It aims to improve the individual combat capability of the dealer sales team, refine the service level and build a team. A lean, efficient and pragmatic team. For the consumer level, Sanxiong Aurora has launched the PAK intelligent shopping guide software. The software has six modules, namely product series, product experience, customer case, 360° experience, experience camera, and panoramic exhibition hall. By using software, consumers can not only easily access different types of product-related materials with one click, but also match the lamps according to their favorite style. PAK intelligent shopping guide software Q: How does Sanxiong Aurora view the changes in the lighting industry? What are the different characteristics of the lighting industry compared with a few years ago? Lin Yan: The LED industry in the future will no longer be a single-player “price warâ€, but a new marketing model such as cross-border cooperation and group sharing. But whether it is cross-border cooperation or deep-seated segmentation, it is the progress of market development. In the complex market situation of the LED lighting industry, who can work hard in product quality, service, technology, etc., to meet the multi-level market demand, who can have more market voice and initiative. Q: From the perspective of Sanxiong Aurora, is overseas acquisition one of the ways for Chinese LED lighting companies to become bigger and stronger? Lin Yan: M&A is a double-edged sword. On the one hand, it can integrate global resources to achieve rapid development; on the other hand, it is accompanied by high risks. For example, the financial burden, cultural value difference, and brain drain caused by financing. Q: From the perspective of Sanxiong Aurora, what other highlights of the LED industry are worth paying attention to? Which ones will become the new profit growth point of the LED industry? Lin Yan: Intelligent lighting + intelligent lighting is the driving force for the development of the next wave of lighting market. According to relevant agency data, the smart lighting market is accelerating its annual growth rate of 17% annually in 2013-2020. It is estimated that by 2020, the smart lighting market is expected to exceed 8 billion US dollars, and the market has huge room for development. In the future, healthy lighting will become a new growth point. Because, at present, LED lighting generally has many problems such as unreasonable product selection, unreasonable layout design, insufficient illumination brightness or excessive lighting, and excessive lighting. In this context, in 2016, Sanxiong Aurora put forward the concept of “light health†and began to carry out the original motivation of “light health†clinics nationwide. Q: A few years ago, the concept of horizontal and vertical integration of the LED industry has always been the focus of everyone's attention. What is the layout strategy of Sanxiong Aurora? Lin Yan: Looking back on the boom in M&A in the LED industry in 2015, there are not only horizontal integration, vertical extension, but also cross-border capital trends, and the tide of mergers and acquisitions is surging. With the withdrawal of a number of small and medium-sized enterprises, it is expected that the market concentration will be further improved in 2016, and leading enterprises in various fields will also have more technological advantages and scale effects. Nantong Boxin Electronic Technology Co., Ltd. , https://www.bosencontrols.com
